STEP ONE: Open your video in KMPlayer, and move to where you’re planning to gif. Press Ctrl+G, and the Frame Extraction box comes up. Here are my settings, which I find work best.

(click each pic for a bigger version)

Now, just move a couple seconds before the section you want to gif in your video, press play, and click Start in the Frame Extraction box. After it’s gone past the end of the moment you want to capture, click Stop. Obviously you don’t need to worry about being precise, you can just delete any excess caps afterwards.

Your caps will be saved in the location at the top of the Frame Extraction box. Open that folder, and like I said, just delete any caps from the beginning and end that you don’t want as part of your gif. Now you’re just left with the caps you need.

STEP 2: Open Photoshop. Go to File > Scripts > Load Files Into Stack. Where it says Use, select Folder. Click Browse, and find the folder your caps are in. (note: a couple people have been given an error message at this stage. I have no idea why, your best bet is to just google and try and find a solution)

Click OK, and your caps will start to load up. Once it’s done, go to Window > Animation, so you get your animation toolbar. Make sure it’s Animation (Frames) and notAnimation (Timeline) - You can change this by clicking the little button in the right hand corner. Under your first frame, it should say either Once or Forever - make sure it’s on Forever, so your gif loops. Then, click the little arrow on the right hand side, and select Make Frames From Layers.

Your frames should appear reversed - so just select them all, click the arrow again, and select Reverse Frames. When you play the gif it should be quite fast - I usually select all frames, click 0 sec. under one of them, and then change it to 0.1.

Then, you have your basic gif! Obviously you’ll need to resize it, to however big you want it to be. You can do your colouring how you’d normally do it in Photoshop - on top of the layers in your layers palette.

Now you want to save it. Go to File > Save for Web and Devices. I usually have my settings on Selective and Pattern (No Dither reduces the file size, but I don’t really like the quality of it), and the rest of them like so:

If you’re making your gif for Tumblr usage you’ll obviously need to get it under 1mb - which is where the Color settings come in. The lower the number, the lower the file size, and the lower the quality. Obviously there are a lot of things you can do before this point to make sure you can keep to the highest number possible - a smaller size, darker colours, less frames, etc. Click save, and there’s your gif!

Hope I helped (: